Managerial Performance and Compensation Under Synergy's compensation plan each team manager is paid a salary of $120,000 and a performance bonus. Synergy is debating how to structure this bonus, so is considering various measures of performance. A) The first option is to base the bonus on total segment profit (including allocated overhead) as calculated in part 1 above. Under the proposed (question 1A) and alternative (question 1B) ABC cost allocation methods, calculate each team managers' bonus if the bonus was equal to 1.8% of the team's segment profit. B) A second option is to generate some bonus equation using return on investment (ROI) or residual income (RI). Calculate the ROI and RI for each team using the alternative ABC method from question 1C, and the data below. Team 3 Team 1 Investment per team in thousands $ $ 20,250 S Required rate of return Team 2 15,600 $ 10% 8,590 10% 10% C) A third option would be to use a balanced scorecard (BSC) to assess bonuses. Using your experience and what you leamed in this class generate one goal and a corresponding measure for the employee, customer, and operations perspectives of a BSC.
